Competition
We are subject to significant competition that could impact our ability to gain market share, win business and increase the price of our products. We face strong competition from a wide variety of firms, including large, retail box or discount as well as small businesses.
Quicksilver, Inc., (ZQK) a publicly traded company based in Huntington Beach, California, is a manufacturer of surfwear and surfing accessories. The company’s products are carried in surf shops, specialty stores, department stores and its own Boardriders Club stores throughout the world. This company is managed and operated by surfers, and generates approximately $2 billion in sales annually.
Billabong Intl, (AU:BGG) publicly trades on the Australian Stock Exchange, however, it is based in Irvine, California. The company manufactures surfwear and surfing accessories for boys, men, and girls. In 1983, Bob Hurley purchased the licensing rights to market Billabong in North America. He was instrumental in bringing the company to its current level of success. In 1999, Mr. Hurley relinquished the license and began his own company, Hurley. Billabong is run by surfers and generates over $1 billion annually in revenue.
Hurley, based in Costa Mesa, California, manufactures surfwear and surfing accessories for boys, men and girls. The Company is managed and operated by a surfer, Bob Hurley. In February 2002, Hurley was purchased by Nike, Inc. (NKE). Terms of the transaction were not disclosed.
Volcom Inc., (VLMC) a publicly traded company located in Costa Mesa, California, ownd by a French holding company of luxury goods, manufactures young men’s and young women’s clothing and accessories. The company’s products are carried in boardsports retailers, specialty stores and department stores. Volcom produces over $300 million in sales annually. The company was founded by surfers and is managed by surfers.
Vitamin Blue has taken a very assertive stance and has earned an entry position in the surf industry. By currently distributing its products to surfboard manufacturers and surf shops, Vitamin Blue has initiated the steps necessary in building long-term brand awareness. Since 1999 the company has experienced positive sales growth each year.
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